iEdge SG All Healthcare Index generated 35.3% total return YTD

This was due to positive performances by biotech, healthcare supplies and medical devices.

The iEdge SG All Healthcare Index has generated a 35.3% total return YTD in 2020, according to SGX. The constituents generated a 45.1% average total return, with the median total return at -1.0%.

This is attributable to a positive skew in performances by biotech, healthcare supplies and medical devices.

Moreover, combined turnover of the iEdge SG All Healthcare Index constituents has surged 328% to $31.9m YTD from an average daily turnover of $7.4m in 2019. In total, 22 healthcare stocks have seen increased investor participation.

Stocks that saw the largest percentage growth in turnover included Medtecs, UG Healthcare, Biolidics, Top Glove, and Hyphens Pharma. Together, these five stocks’ average daily turnover is $14.7m over the period.

Top Glove Corporation saw a surge in sales orders for gloves, an essential item in the medical sector, whilst Riverstone Holdings’ cleanroom and healthcare glove segments continued to record robust sales volume growth due to surging worldwide demand amidst the pandemic.

Due to recent price movements, Top Glove Corporation and Riverstone Holdings currently maintain the highest weightings in the iEdge SG All Healthcare Index. The index constituents will have their index weights capped at 10% at the semi-annual index reviews in March and September.

Similarly, the top quartile of global healthcare stocks by market value have generated a median total return of 8.3% over the same period, with the average total return significantly higher at 26.8%.

SGX notes that with sharp declines in economic output across the world, economic policies have focused on the provision of stable money markets and synchronised fiscal stimulus. The key social and economic risk going into H2 2020 remains the potential for second waves of the pandemic.